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The Enron scandal was an accounting scandal sparked by American energy company Enron Corporation filing for bankruptcy after news of widespread internal fraud became public in October 2001, leading to its accounting firm, Arthur Andersen, then one of the five largest in the world, dissolving. In addition to being the largest bankruptcy ...
Arthur Andersen LLP v. United States, 544 U.S. 696 (2005), was a United States Supreme Court case in which the Court unanimously overturned accounting firm Arthur Andersen's conviction of obstruction of justice in the fraudulent activities and subsequent collapse of Enron.
Lay was charged, in a 65-page indictment, with 11 counts of securities fraud, wire fraud, and making false and misleading statements. The trial of Kenneth Lay and Jeffrey Skilling commenced on January 30, 2006, in Houston. [2] Lay insisted that Enron's collapse was due to a conspiracy waged by short sellers, rogue executives, and the news media.
In the long history of financial frauds, Enron ranks near the top of the list, with the once high-flying energy trading company suddenly unraveling in a web of lies and accounting sleight-of-hand ...
Soon after Skilling's departure, whistleblower Sherron Watkins discovers the fraud in Enron's books and alerts Lay, telling him the company is headed to certain collapse unless he acts immediately. Like in 1987, Lay largely ignores the warnings and assures that Skilling left for personal reasons and the company is financially solid.
An elaborate parody appears to be behind an effort to resurrect Enron, the Houston-based energy company that exemplified the worst in American corporate fraud and greed after it went bankrupt in 2001.
In June 2010, the U.S. Supreme Court threw out the honest services fraud statute in a unanimous decision; the case went before Lake again, to sort out which counts must be dismissed in light of the Supreme Court ruling and then re-sentence Skilling again.
Houston-based Enron filed for bankruptcy in 2001 after revelations it engaged in a massive, yearslong corporate accounting fraud. (James Nielsen/Getty Images/FILE)